State pensioners warned over 'exact date' payments will start being taxed

The exact date the state pension will be taxed after the triple lock rise was confirmed has been revealed. Pensioners will all have to start paying tax on their state pension cash due to the triple lock, which the Labour Party government is sticking by.

Those on the full state pension currently get £221.20 a week or £11,502.40 a year, but in 2025/26 this will be uprated to £230 or £11,973 a week or a year respectively. By 2026/27, it will be £236.00 or £12,272 - and a year later, it could hit £241 a week in 20217, or £12,578 - taking them over the personal allowance threshold.

Sir Steve Webb, who is now a law partner at a leading firm in the UK, said: "A combination of an increasing state pension and frozen tax thresholds means we will soon be in the nonsensical situation where the new state pension will be just a few pounds above the income tax threshold.

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"This means that people whose only income is the standard new state pension will be dragged into income tax." The former Liberal Democrats Pensions Minister added: "Long gone are the days when retirement meant no longer having to deal with the tax office."

Laura Suter, director of personal finance at AJ Bell, previously told The Sun newspaper: "Pensioners looking to reduce their tax bill need to think about how they can maximise their tax-free income. For example, any withdrawals made from their ISAs will be free of any tax. so they can use that pot of money to boost their income without impacting their tax bill."

She said: "Most people can access 25% of their pension as a tax-free lump sum so they may decide to use this to top up their income without pushing up their tax bill."